Solution 2.2
 
 

You are required to classify each of the following costs according to whether they are direct or indirect, based on tracing the cost to a) department and b) product line

Cost

 Department
 Product line

Salary of restaurant supervisor

Direct
Indirect

Rent of shop unit

Indirect
Indirect

Depreciation of computer reservation system

Direct
Indirect

Sales commission

Direct
Direct

Purchase of goods for resale in a shop

Direct
Direct

Paint for each product

Direct
Direct

Oil for central heating system

Indirect
Indirect

Home delivery service costs for supermarket

Indirect
Indirect

Cashiers wages

Direct
Indirect

Facilities managers salary

Indirect
Indirect